Roblox released its financial earnings report for the first quarter of its fiscal year on March 31, 2023. The company reported revenue of $655 million, up 22% year-over-year. However, it also posted a net loss of $268 million, compared to a net loss of $160 million in the year-ago quarter.
Despite the loss, Roblox CEO David Baszucki said the company is “on a strong track” and is “building a technology platform that enables a large and growing community of creators to build amazing experiences.”
Roblox users spent a total of 14.5 billion hours on the platform in the first quarter of 2023, up 23% from the same period in 2022. This was the highest level of engagement in Roblox’s history.
The company’s daily active users (DAUs) also grew by 22% year-over-year, to 66.1 million. The largest increases in DAU and engagement growth were seen among Roblox’s international and 13-and-older segments.
However, the company reported that the primary drivers of bookings growth were older users, as the 17-to-24 age group experienced a 35% year-on-year increase in the first quarter.
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Roblox CFO Michael Guthrie said the company is “moderating our rate of investment in headcount and infrastructure” due to its current growth trends. He also said the company is “operating at an operational excellence level” and has not laid off any employees.
Overall, Roblox’s earnings report shows that the company is growing rapidly, but it is still losing money. The company is taking steps to reduce its losses, but it remains to be seen whether these steps will be enough to turn a profit in the near future.
David Baszucki and Erik Cassel co-founded Roblox in 2004, and the platform was officially launched in 2006. It experienced significant growth in the latter half of the 2010s. By August 2020, Roblox boasted an impressive user base of over 164 million monthly active users, with a notable presence among American children under the age of 16, accounting for more than half of this demographic.